ESG Fund Factsheet

For adviser use only

Vanguard SRI European

Classification: Ethical
Management style: Passive

Introduction

The Fund employs a passive management – or indexing – investment approach and seeks to provide long-term capital growth by seeking to achieve the performance of the FTSE Developed Europe Index (the “Index”).

The Fund promotes environmental and social characteristics by excluding companies from its portfolio based on the impact of their conduct or products on society and / or the environment. This is met by not holding stocks of companies in the Index that do not meet specific “socially responsible” criteria.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
Vanguard SRI European 25/10/2011 Europe Excluding UK 0.15% £364*

About Vanguard

Vanguard was founded in 1975 on a simple but revolutionary idea: that an investment company should manage it’s funds solely in the interests of it’s clients.

Rather than being publicly traded or owned by a small number of individuals, The Vanguard Group is owned by Vanguards US-domiciled funds, which in turn are owned by their investors.

Vanguard is the worlds largest issuer of mutual fund and the second largest issuer of ETFs after Blackrock iShares.

Investment Strategy

The Fund attempts to:

  1. Match the risk factor exposures of the Index by investing in a representative sample of the securities that make up the Index, excluding any securities which do not meet socially responsible investing criteria. The criteria take into consideration environmental, social and ethical factors as determined by the Index provider and exclude stocks that violate United Nations Global Compact (“UNGC”) principles and stocks of companies involved in making controversial weapons and tobacco products.

2. Remain fully invested except in extraordinary market, political or similar conditions.

Exclusion Policies

The Fund promotes environmental and social characteristics by excluding companies from its portfolio based on the impact of their conduct or products on society and / or the environment. This is met by tracking the Index. The Index excludes stocks of companies that the sponsor of the Index determines to be engaged or involved in, and / or derive revenue (above a threshold specified by the Index provider) from, the following activities:

(a) Vice Products (i.e., adult entertainment, alcohol, gambling, tobacco, cannabis);

(b) Non-Renewable Energy (i.e., nuclear power, fossil fuels (including power generation from oil, gas, and thermal coal); and

(c) Weapons (chemical & biological weapons, cluster munitions, antipersonnel landmines, nuclear weapons, civilian firearms, and conventional military weapons).

The index methodology also excludes companies that, as determined by the Index provider, are involved in severe controversies (i.e., companies which do not meet the labour, human rights, environmental, and anticorruption standards as defined by the United Nations Global Compact Principles).

Investment Performance

The funds benchmark is the FTSE Developed Europe Index. It has underperformed the index over 1 year, however outperformed over 3 and 5 years.

Source Vanguard, 16th November 2022

Past performance is not a guide to future performance.

Platform availability

The fund is available on the following platforms:

Abrdn Wrap M&G Wealth
Abrdn Elevate Fidelity
Advance by Embark Aegon
Aviva Interactive Investor
James Hay Novia
Nucleus Quilter
Transact

Supporting documents

Tenet Opinion

The fund has a detailed list of exclusions which will meet the requirements of a range of clients who wish to exclude certain areas from their portfolios on ethical grounds. It is important however to consult the fund literature for the specifics around these exclusions to ensure how they are applied is acceptable to the client.

The fund does not however have any positive screening at all, and simply tracks the index while excluding certain elements. This means it may not be appropriate for a client who wishes for their portfolio to actively look to invest in areas that align with their personal ethics.

It may be suitable for clients who wish to have a low cost European tracker as part of a portfolio that excludes certain areas on ethical grounds.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).